Finisar (FNSR) Bullish Stance Reiterated at Needham & Company Post Q3

Needham & Company analyst Alex Henderson reiterated a Buy rating and $25 price target on Finisar (NASDAQ: FNSR) following in-line Q3 results and positive guidance.

Henderson comments, "Finisar results came in pretty much as expected with strong Data Comm and weak Telecom. Revenues and EPS matched the Street estimates. Guidance was better than the Street had modeled, but that may be attributable primarily to the 14-week quarter versus the normal 13-week quarters. Every four years there is a catch-up quarter and this is one of those years. The extra week is likely the majority of the variance in the Street forecasts. Our model wobbles a bit to reflect the detail on the extra week in the April quarter and the reversion to the July quarter, but our estimates are essentially unchanged for the CY15 and CY16 periods otherwise. We still think Finisar is in a transition period and that the improved outlook is more a 2HCY15 time line."

The firm is:

• Increasing CY15 Revenues to $1,289MM from $1,242MM
• Increasing CY15 EPS to $1.12 from $1.04
• Increasing CY16 Revenues to $1,373MM from $1,360MM
• Maintaining CY16 EPS estimates at $1.40

For an analyst ratings summary and ratings history on Finisar click here. For more ratings news on Finisar click here.

Shares of Finisar closed at $20.33 yesterday.

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